Insider Selling: Macy's (NYSE:M) CEO Sells 7,228 Shares of Stock

Key Points

• CEO Olivier Bron sold 7,228 shares on April 6 at an average price of $17.92 (total $129,525.76) to cover tax withholding from vested equity, reducing his stake by 25.08% to 21,590 shares (approx. $386,893).
• Macy's recently posted an earnings beat ($1.67 vs. $1.55) on $7.92 billion revenue, the stock trades around $18.10, the quarterly dividend was raised to $0.1915 (annualized yield ~4.2%), and analysts' consensus rating is currently "Reduce" with an average target of $18.90.

Macy's, Inc. (NYSE:M - Get Free Report) CEO Olivier Bron sold 7,228 shares of Macy's stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $17.92, for a total transaction of $129,525.76. Following the completion of the transaction, the chief executive officer owned 21,590 shares of the company's stock, valued at $386,892.80. This trade represents a 25.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Macy's Price Performance

Shares of NYSE:M traded down $0.03 during trading on Tuesday, reaching $18.10. The stock had a trading volume of 4,733,326 shares, compared to its average volume of 7,639,447. Macy's, Inc. has a 52 week low of $9.76 and a 52 week high of $24.41. The business's 50-day moving average price is $19.55 and its 200 day moving average price is $20.19. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.49 and a quick ratio of 0.50. The stock has a market capitalization of $4.77 billion, a PE ratio of 7.80 and a beta of 1.51.

Macy's (NYSE:M - Get Free Report) last posted its earnings results on Wednesday, March 18th. The company reported $1.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.12. Macy's had a net margin of 2.84% and a return on equity of 14.22%. The company had revenue of $7.92 billion during the quarter, compared to analysts' expectations of $7.48 billion. During the same quarter in the previous year, the company posted $1.80 earnings per share. Macy's's quarterly revenue was down 1.7% compared to the same quarter last year. As a group, equities analysts predict that Macy's, Inc. will post 2.39 earnings per share for the current year.

Macy's Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th were paid a $0.1915 dividend. This represents a $0.77 dividend on an annualized basis and a dividend yield of 4.2%. This is an increase from Macy's's previous quarterly dividend of $0.18. The ex-dividend date was Friday, March 13th. Macy's's dividend payout ratio is presently 33.19%.

Institutional Trading of Macy's

A number of hedge funds and other institutional investors have recently modified their holdings of M. Strengthening Families & Communities LLC acquired a new stake in shares of Macy's in the fourth quarter valued at approximately $28,000. V Square Quantitative Management LLC acquired a new stake in shares of Macy's in the fourth quarter valued at approximately $29,000. Cullen Frost Bankers Inc. acquired a new stake in shares of Macy's in the third quarter valued at approximately $31,000. Smartleaf Asset Management LLC increased its holdings in shares of Macy's by 51.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,543 shares of the company's stock valued at $34,000 after purchasing an additional 526 shares in the last quarter. Finally, Bessemer Group Inc. grew its holdings in Macy's by 41.4% during the 3rd quarter. Bessemer Group Inc. now owns 2,023 shares of the company's stock worth $37,000 after acquiring an additional 592 shares during the period. Institutional investors and hedge funds own 87.36% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on M shares. Wall Street Zen cut shares of Macy's from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 23rd. Citigroup cut their target price on shares of Macy's from $24.00 to $18.00 and set a "neutral" rating for the company in a research note on Thursday, March 19th. UBS Group raised their price target on shares of Macy's from $8.00 to $9.00 and gave the company a "sell" rating in a report on Monday, March 9th. Weiss Ratings reissued a "hold (c)" rating on shares of Macy's in a report on Friday, March 27th. Finally, Telsey Advisory Group reissued a "market perform" rating and issued a $20.00 price target on shares of Macy's in a report on Wednesday, April 1st. One investment analyst has rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $18.90.

Macy's Company Profile

Macy's, Inc is a leading American omnichannel retailer operating under the Macy's brand, as well as specialty divisions Bloomingdale's and Bluemercury. The company's retail portfolio encompasses full-line department stores, fashion-focused specialty outlets and a high-end beauty chain, offering consumers a wide array of apparel, footwear, accessories, cosmetics and home furnishings. Through its integrated network of physical stores and digital platforms, Macy's seeks to deliver a seamless shopping experience that blends in-store service with online convenience.

The company's product assortment spans men's, women's and children's clothing, beauty and personal care products, housewares and home décor.

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